Department of Health and Human Services
DEPARTMENTAL APPEALS BOARD
Appellate Division
SUBJECT: New York
State
Department of Social Services
Docket No. 90-253
Decision No. 1226
DATE: February 12, 1991
DECISION
The New York State Department of Social Services (New York/State)
appealed
a determination by the Family Support Administration (FSA)
disallowing
$546,723 in federal financial participation (FFP) claimed by
the State under
section 403(a) of the Social Security Act (Act). FSA
found that the
State had claimed FFP under Title IV-A of the Act (Aid to
Families with
Dependent Children) for administrative costs incurred with
the provision of
child care, which is a "social service" as described in
section 2002(a)(1) of
the Act. With certain exceptions, section
403(a)(3) prohibits
reimbursing such costs with Title IV-A funding.
The Board first addressed these issues in a series of appeals by the
State
which resulted in New York State Dept. of Social Services, DAB No.
759
(1986). There, the Board upheld the disallowances in general
but
remanded for two purposes: (1) to permit the State an opportunity
to
document to what extent the costs fell within one of the exceptions
to
the section 403(a)(3) prohibition (for costs incurred in connection
with
a Community Work Experience Program); and (2) to permit FSA to
consider
the State's argument that some of the costs were allowable because
they
were associated with child care paid by Title IV-A as an
"expense
incidental to employment" and the State to show to what extent the
costs
related to such child care.
As a result of the parties inability to reach a satisfactory resolution
on
remand, the Board issued New York State Dept. of Social Services, DAB
No. 932
(1988). There, we affirmed our holding in DAB No. 759. We
upheld
the disallowances first addressed in DAB No. 759, except to the
degree that
New York was able to meet its burden to show to what extent
the costs were
within three areas where FSA agreed to review further
documentation.
New York indicated that the current appeal "involves the
identical issues of
law and fact" which were addressed in DAB No. 932.
Consequently, New York
asked that we issue a summary decision based on
the rationale of DAB No.
932. FSA agreed with the State's request.
We therefore sustain the disallowance of $546,723 based on DAB No.
932,
which we incorporate by reference.
Donald F. Garrett
Norval D. (John) Settle
Judith A. Ballard Presiding Board